FACULTY OF LAW

by Unknown Author is
licensed under
International Trade & Finance

Unimodal and multimodal transportation

BY

Sandeep chawda
B.A.LLB(Hons) 3rd year (5th sem).

SUBMITTED TO: Mr. Enam Firdous sir.

Contents
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INTRODUCTION.....................................................................................4
Unimodal Transport..............................................................................5
Intermodal Transport............................................................................6
Multimodal Transport...........................................................................7
Advantage and Disadvantage of Unimodal Transport..........................9
Why there is a need for Multimodal transport..................................10
Advantage of Multimodal Transport..................................................10
Conclusion..........................................................................................12
Bibliography........................................................................................13

Acknowledgement

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It is great privilege to express deep gratitude to my learned and esteemed International Trade
Law teacher, Mr. Enam Firdous sir, for his wise and accurate suggestions, careful and
reasoned criticism and keen interest.

I would also thank my institution and faculty members without whom this project would have
been a distant reality. I also extend my heartfelt thanks to my family and friends.

Sandeep chawda

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INTRODUCTION

OVERVIEW OF TRANSPORTATION

It cannot be denied that transportation is one of the key components to trade facilitation. The
function of transportation is to move the people and goods from one location to another.
Transportation can be performed by various modes, such as air, rail, road, sea, inland
waterway, pipeline, cable and space.

In some sense, the data transmission through internet also can be deemed as transportation.
Infrastructure creates usage path of transportation, which vehicles are placed there. Journey is
started by vehicles on the available infrastructure from one origin place to final destination.
This finally comes to transport service by transport service provider or transport operator.

Back to 1830, the container transport by rail was brought out by the Liverpool & Manchester
Railway using Roll-on/Roll-off container and in 1839 the Birmingham & Derby railways
introduced a form of multimodal transport by transferring the container from rail wagons to
horse carriage.

The first container carriage inaugurated in 1921 by rail transport and sea transport happened
in 1957 by Sea-Land Inc. in USA, when Mr. McLean, the boss of his own trucking business
in the North Carolina rebranded his company and introduced the first of a series of vessels
converted into a specialized container ship that were capable to carry boxes below and on the
deck of the ship.

Sea-Land Inc. expanded container business by improving logistics of the American military’s
mission in Vietnam and had six container vessels during that time traversing the Pacific from
US west coast.

At the same time, American President Lines came up at early 1958 inaugurated
containerization in the Pacific from San Francisco as well. Other shipping lines, Germany’s
Happag Lloyd, Britain’s P&O, Denmark’s Maersk Line introduced their first container-
carrying vessels in the decade of the 1960.

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Today any type of cargoes is carried by container ships, including break bulk, liquid cargo
using different type of boxes for different kinds of commodities and goods.

The port-to-port transportation by container becomes more popular; however, the requirement
of International Trade makes pressure to transport operator to offer extended service up to the
point of delivery beyond the port. The concept of intermodal transport or combine transport
steps into international transportation.

Definition

Modes of Transport: it is a term applied to distinguish substantially different ways to perform

transport or the method of transport used for the apparent motion of goods such as road, sea,
air or rail.

Means of Transport: it defines as the vehicle that uses for transportation such as vessel, barge,
truck, aircraft etc.

Type of Transport: In this context, it refers as to how the transport is performed by which
mode and which means of transport. Type of transport can be referred as Unimodal, through
transport such as Intermodal, Multimodal and Combine transport, which are very similar in
term of transportation of goods by more than one mode of transport but the way of carriage is
different.

Unimodal Transport
The transportation, which the goods are carried by purely one single mode of transport is so
called Unimodal transport, namely by road, rails, sea, inland waterway, air, space and
pipeline. In short, it is known as Carriage of goods by only one mode of transport.

In sea transport, if the goods is shipped by one carrier who issues own transport document,
bill of lading from one port to another port is normal case, however, If there is more than one
carrier, for example, the carriage from one port via another port (transshipment at
intermediate port) to final destination port, the first carrier who has taken in charge may issue
a through bill of lading covering the entire transport with full responsibility and liability for
the entire port- to-port transport. This is also the Unimodal transport.

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Intermodal Transport
It is one of transportation type, which carries the goods from one place to another place
internationally by at least two modes of conveyance. It involves the transportation of freight
in an intermodal container or vehicle, using several modes of transportation without any
handling of the freight itself when changing modes through an intermodal transport chain,
which permits the integration of several transportation networks. The concept of Intermodal
transport is to reduce cargo handling during transportation, better protection, improve
security and reduce damage and loss to the commodities. Moreover, it would enhance the
performance of transportation by using the most productive modes. Such as long-haul of
transport, the rail or inland waterway may be used while the flexibility and efficiencies of
delivery will be done by Truck.

In North America, the term intermodal is also used to refer to containerized rail
transportation. The key role of intermodal transport is one single entire trip with one single
contract of carrier rather than a series of legs, each marked by an individual transport
operation with separate sets of documents and freight charge including carriers.

In some concept, the Combine transport is a shape of intermodal transport that is the
movement of goods in one and the same loading unit or road vehicle, using successively two
or more modes of transport without handling the goods themselves when changing modes.

In EU, Intermodal transport can be understood as the movement of goods whereby at least
two different modes are used in a door-to-door transport chain or, according to ECMT, it
means the movement of goods in one and the same loading unit or vehicle which uses
successively several modes of transport without handling of the goods themselves in
changing modes.

Combined transport (ECMT) is an intermodal transport where the major part of the journey is
by rail, inland waterways or sea, and any initial and/or final legs carried out by road are as
short as possible.

Combined Transport, a form of goods haulage which involves a combination of road

transport with alternative rail and/or water-based transport, using these alternative modes for
the majority of the journey, with use of road haulage limited as far as possible to a relatively
short distance at the start and/or end of the journey. The goods are carried in a load unit, with
the entire load unit then transferred between transport modes at interchanges as required
during the journey. Using the various modes of transport in this combination can help reduce
the overall environmental impact of freight transport compared to road haulage alone,
improving the environmental performance of freight transport, as well as reducing road
congestion. - European Commission Public Consultation.

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NOTE: European Commission Communication COM(97)243 Final used the term
intermodality to describe a system of transport where at least two different modes of transport
are used in an integrated way to complete a door to door transport chain.

Thus, the characteristic of Intermodal transport is consists of

- Using more than one mode of transport

- Using an ITU – Intermodal Transport Unit, which could be a container or a swap

body or semi-trailer/ goods road motor vehicle

- Without handling the goods during the journey of transport

- Door to Door Transport Chain

Multimodal Transport
The Multimodal Transport is similar to Intermodal Transport in term of using various modes
of transport from one place to another place internationally as well as a single contract and
single carrier for transportation. The difference between Intermodal transport and multimodal
transport is the cargoes handling during the journey. The Multimodal transport operation will
require having cargoes handling during the transportation. Some may refer Multimodal
Transport as Combine Transport as well.

However, Combined Transport is obsolete 1975 ICC Rules and have been replaced by 1992
UNCTAD/ICC rules for multimodal transport. Therefore, the expression of multimodal
transport should be used when the carrier is liable for door-to-door transport while combined
transport should be used for road/rail combination in European context or American
intermodal freight transport.

At the fundamental of arrangement Multimodal Transport Operator shall have the ability to
design, analyze transport system, planning of operation and provide an effective transport
with competitive cost and less time in particular routes.

By legal definition, Multimodal transport is a contract for carriage of goods contains an

undertaking by a carrier so called the Multimodal Transport Operator and perform carriage of
goods by at least two different modes of transport from the place where the goods are taken in
charge to a place for delivery.

This indicates that carrier accepts responsibility for the whole carriage in entire transport
chain, even though said carrier may actually perform only part of the carriage, or even none

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at all. Consignor will receive only one transport document for the entire transport but
multimodal transport operator may receive more than one document from sub-carrier or his
subcontractors.

Multimodal Transport Definition:

European Conference of Ministers of Transport (ECMT) defines Multimodal Transport as
“the carriage of goods by at least two different modes of transport.”

United Nations Convention on International Multimodal Transport of Goods 1980 or MT

Convention defines as “the carriage of goods by at least two different modes of transport on
the basis of a multimodal transport contract from a place in one country at which the goods
are taken in charge by the multimodal transport operator to a place designated for delivery in
a different country. The operations of pick-up and delivery of goods carried out in the
performance of a Unimodal transport contract, as defined in such contract, shall not be
considered as international multimodal transport.

In ASEAN Framework agreement on Multimodal Transport, the definition of International

multimodal transport is the same as United Nations Convention on International Multimodal
Transport of Goods.

In fact the component of international multimodal transport consists of

1.It must be international transport between two or more countries,

2.At least two modes of transportation must be performed,

3.It must be done by Multimodal transport Operator who is responsible for the entire of
carriage,

4.One single document represents as Carriage of goods Contract, Document of Title and
Cargo receipt.

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Conclusion

The pattern of transportation has been changed gradually and especially when
containerization has been implemented, the several concept of transport using container has
come out. Starting from Unimodal Transport where the common carrier, namely shipping line
carries container from port to port, the pattern of transportation has been developed and
become Intermodal/Combine Transport and finally multimodal transport.

The key different between Intermodal transport and multimodal transport is cargo handling
during the journey of transport.

Advantage and Disadvantage of Unimodal Transport

It is inevitable to say that transportation facilitate international trade moving the goods from
seller to buyer. There are advantage and disadvantage of using Unimodal when the economic
becomes globalization. Since Unimodal transport in most cases, provides port-to-port,
terminal-to-terminal rather than point-to-point except land transport gets involved from the
beginning point to the ending point in entire transport.

1.Unimodal transport can provide door-to-door delivery in case land transport is used.
However, there is limitation when there is no physical linkage for a truck to run and trucking
cost is not in economy scale. However, mostly Unimodal transport serves terminal to terminal
or port to port basis.

2.Unimodal transport can serve more efficiently in term of cost when goods are shipped for
port to port or terminal to terminal only, however, whenever the shipment has to be shipped
beyond port or terminal to ending point of transport, multimodal transport is more efficient in
cost since the single contract is made and it is not necessary for Trader to find carriers to take
over the shipment for second leg of transport and so.

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Why there is a need for Multimodal transport
Trade is important along the supply chain from raw material through intermediate
manufacturing or processing to the final consumption of goods which involves with several
parties, particularly seller, buyer and service provider. It is hardly to deny that transport

facilitates Trade and trade cannot move forward without transport. Transport may become an
obstacle to trade for several reasons: rules and regulation in transport, service of common
carrier availability, physical linkage, excessive cost and customary practice.

To relieve the transport problem, Trader may request 3PLs (Third Party Logistics Service
Provider) to give a hand on transport logistics. Therefore, Trader can concentrate on their
core business and reduce in logistics costs because of better knowledge of Multimodal
Transport Operator or 3PLs.

Specialized 3PLs are more and better oriented towards an efficient and effective use of their
own transport network. Using Multimodal transport method to enhance the Trade flow from
one place to another place, the cost and quality of transport are improving.

Advantage of Multimodal Transport

•DEALING WITH ONE OPERATOR

The consignor or consignee depends on Trade Term shall deal only the Multimodal Transport
Operator for their entire transport of his goods including all concerned liability and or delay
in delivery. This helps to avoid confusion and complicate all matter relating to transportation
when dealing with various operator or common carrier.

This also would help for one single stop communication to track and trace the goods during
and after journey.

•DEALING WITH ONE SINGLE DOCUMENT

The consignor or consignee will deal one single document issued by Multimodal Transport
Operator, Multimodal Transport Bill of Lading. Not only avoid multiple documents in entire

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transport route, but also it would help, to avoid burden of other formalities on each transport
leg connected within transport chain.

•MAKE JUST IN TIME

In several cases, consignor delays his production due to weak supply chain and logistics
management, thus the time of delivery becomes not sufficient on Maritime transport transit
time. To use air mode in order to meet the delivery time is too costly.

Multimodal Transport therefore, is an alternative mode combining two modes of transport

makes the shipment arrive on time. Multimodal Transport also serves faster transit time by
the professional service of Operator.

•COST SAVE

It seems that Multimodal Transport may impose high cost when comparing with Unimodal
likes sea transport; however, when considering total cost of overall

segmented of entire transport, the Multimodal Transport Operator will provide lower freight
rate than separate each segmented of transport leg. Moreover, the premium of cargo insurance
cost will also be reduced.

•SAVE TIME

To deal with one service provider, it would help consignor or consignee to minimize time
spent in planning and arrangement of various segmented of transport chain and worry free.

•DOOR-TO-DOOR DELIVERY

It looks similar to Unimodal transport in term of using truck from one factory door to final
destination door, however, what different of multimodal transport is the complexity in
transport chain when the origin and destination is far away and only one mode, likes truck
transport cannot done door delivery.

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Conclusion

The demand of traders in international business and the usage of INCOTERM create more
complexity in transportation operation. To server such demand, the transport operator should
have well understand what is the different, benefit or disadvantage when performing transport
operation.

The similarity between Intermodal transport and Multimodal transport may confuse
stakeholder in term of liability and legal concerned.

The definition of Multimodal Transport in ASEAN context clearly identify that Multimodal
Transport Operator is only single party who will take responsibility for the entire of carriage
after goods have been taken in his charge.

Bibliography

Books referred:

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  “International Trade law”, by Indra Carr.
 International Trade law, by Dr. S.R Mayneni.

Online Sources:

 Ipleadersblog.com
 Lawpreneurz.com
 Articlesliabrary.in

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